New project in Phoenix, AZ
In my last blog post I asked the question Could you earn more by coloring more? This month I want to give you some real life examples of what this looks like for our clients.
One of my favorite recent projects was a 300-unit property in Phoenix that had been purchased by a large multifamily group with holdings around the country. They hired an interior designer who had picked the exterior colors without the benefit of any renderings, and had a few buildings partially painted with samples. After $20,000 or so in upfront color selection, materials and labor, and after two and a half months of work stoppage, the client brought CDDG in.
Within two weeks renderings were approved, the new color palette was finalized and painting had commenced again.
The reality is that when it comes to selecting new colors for a multi-million dollar commercial asset such as an apartment complex or shopping center, you really have to factor in exterior lighting and positioning to the sun in that exact location and as well as consider the neighboring properties, the demographic or clientele. It’s always about choosing the “right” color for that specific community.
We’ve now been working with this same group on multiple communities.
The average commercial or multifamily property requires an investment of several million dollars or more. The investor has certain expectations that the property will generate enough revenue to pay all the operating expenses in addition to the debt service, hopefully leaving some positive cash flow for them at the end of the day. If the property is suffering from higher than normal vacancy or isn’t able to achieve market rents, oftentimes it can be attributed to the lack of curb appeal or the lack of “pop” when a prospective renter looks at the property. On top of that, their renewals from existing residents might be suffering. Consider the math for a minute: if what CDDG does enables the owner or management company to take, say, a 200 unit property from $700 average rents at an 80% occupancy, to a 90% occupancy rate with just a $50 a month bump in rents, the resulting NOI means an additional $3,000,000 – $4,000,000 in value for that asset.
So I’ll ask again, could you earn more by coloring more?
If you’re not sure, give us the opportunity to show you our portfolio of stunning before and after photos. Color is our business. And, our business works to make your property investment business better.